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90_HB0358enr
765 ILCS 77/5
765 ILCS 77/25
765 ILCS 77/30
765 ILCS 77/35
765 ILCS 77/40
765 ILCS 77/55
Amends the Residential Real Property Disclosure Act.
Provides that the Act applies only to a "seller" who is a
person or entity with a legal or equitable interest in the
residential real property and either has occupied or has had
management responsibility for the property. Provides that
the seller shall supplement the disclosure document if it
contains known errors or is subsequently rendered inaccurate
before closing. Adds to the disclosure report form a note
that the disclosures reflect the current condition of the
premises and do not include previously corrected problems.
Provides that if a material defect is disclosed in a
supplemental document, then the prospective buyer shall not
have the right to terminate the contract unless the seller
had actual knowledge of the defect before the initial
disclosure. Provides that if the seller fails or refuses to
deliver the disclosure document before the conveyance of the
residential property, then the buyer shall have the right to
terminate the contract.
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HB0358 Enrolled LRB9000211PTcw
1 AN ACT to amend the Residential Real Property Disclosure
2 Act by changing Sections 5, 25, 30, 35, 40, and 55.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Residential Real Property Disclosure Act
6 is amended by changing Sections 5, 25, 30, 35, 40, and 55 as
7 follows:
8 (765 ILCS 77/5)
9 Sec. 5. Definitions. As used in this Act, unless the
10 context otherwise requires the following terms have the
11 meaning given in this Section.
12 "Residential real property" means real property improved
13 with not less than one nor more than 4 residential dwelling
14 units; units in residential cooperatives; or, condominium
15 units, including the limited common elements allocated to the
16 exclusive use thereof that form an integral part of the
17 condominium unit.
18 "Seller" means every person or entity who is an owner,
19 beneficiary of a trust, contract purchaser or lessee of a
20 ground lease, who has an interest (legal or equitable) in
21 residential real property. However, "seller" shall not
22 include any person who has both (i) never occupied the
23 residential real property and (ii) never had the management
24 responsibility for the residential real property nor
25 delegated such responsibility for the residential real
26 property to another person or entity.
27 "Prospective buyer" means any person or entity
28 negotiating or offering to become an owner or lessee of
29 residential real property by means of a transfer for value to
30 which this Act applies.
31 (Source: P.A. 88-111.)
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1 (765 ILCS 77/25)
2 Sec. 25. Liability of seller.
3 (a) The seller is not liable for any error, inaccuracy,
4 or omission of any information delivered pursuant to this Act
5 if (i) the seller had no knowledge of the error, inaccuracy,
6 or omission, (ii) the error, inaccuracy, or omission was
7 based on a reasonable belief that a material defect or other
8 matter not disclosed had been corrected, or (iii) the error,
9 inaccuracy, or omission was based on information provided by
10 a public agency or by a licensed engineer, land surveyor,
11 structural pest control operator, or by a contractor about
12 matters within the scope of the contractor's occupation and
13 the seller had no knowledge of the error, inaccuracy, or
14 omission.
15 (b) The seller shall disclose material defects of which
16 the seller has actual knowledge.
17 (c) The seller is not obligated by this Act to make any
18 specific investigation or inquiry in an effort to complete
19 the disclosure statement.
20 (d) The seller is under no obligation to amend the
21 disclosure document after its delivery to a prospective buyer
22 unless the disclosure document contains errors, inaccuracies,
23 or omissions of which the seller had actual knowledge at the
24 time the disclosure document was completed and signed by the
25 seller. However, seller shall remain subject to the
26 provisions of Section 45 of this Act.
27 (Source: P.A. 88-111.)
28 (765 ILCS 77/30)
29 Sec. 30. Disclosure supplement. If prior to closing,
30 any seller has actual knowledge of an error, inaccuracy, or
31 omission in any prior disclosure document after delivery of
32 that disclosure document to a prospective buyer, that seller
33 shall supplement the prior disclosure document with a written
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1 supplemental disclosure. If information disclosed in
2 accordance with this Act is subsequently rendered inaccurate
3 as a result of any act, occurrence, incident, or agreement
4 subsequent to the delivery of the required disclosure
5 document, the inaccuracy resulting therefrom from does not
6 constitute a violation of this Act.
7 (Source: P.A. 88-111.)
8 (765 ILCS 77/35)
9 Sec. 35. Disclosure report form. The disclosures
10 required of a seller by this Act, shall be made in the
11 following form:
12 RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
13 NOTICE: THE PURPOSE OF THIS REPORT IS TO PROVIDE
14 PROSPECTIVE BUYERS WITH INFORMATION ABOUT MATERIAL DEFECTS IN
15 THE RESIDENTIAL REAL PROPERTY. THIS REPORT DOES NOT LIMIT
16 THE PARTIES RIGHT TO CONTRACT FOR THE SALE OF RESIDENTIAL
17 REAL PROPERTY IN "AS IS" CONDITION. UNDER COMMON LAW SELLERS
18 WHO DISCLOSE MATERIAL DEFECTS MAY BE UNDER A CONTINUING
19 OBLIGATION TO ADVISE THE PROSPECTIVE BUYERS ABOUT THE
20 CONDITION OF THE RESIDENTIAL REAL PROPERTY EVEN AFTER THE
21 REPORT IS DELIVERED TO THE PROSPECTIVE BUYER. COMPLETION OF
22 THIS REPORT BY SELLER CREATES LEGAL OBLIGATIONS ON SELLER
23 THEREFORE SELLER MAY WISH TO CONSULT AN ATTORNEY PRIOR TO
24 COMPLETION OF THIS REPORT.
25 Property Address: ...........................................
26 City, State & Zip Code: .....................................
27 Seller's Name: ..............................................
28 This Report is a disclosure of certain conditions of the
29 residential real property listed above in compliance with the
30 Residential Real Property Disclosure Act. This information
31 is provided as of ...(month) ...(day) ...(year), and does not
32 reflect any changes made or occurring after that date or
33 information that becomes known to the seller after that date.
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1 The disclosures herein shall not be deemed warranties of any
2 kind by the seller or any person representing any party in
3 this transaction.
4 In this form, "am aware" means to have actual notice or
5 actual knowledge without any specific investigation or
6 inquiry. In this form a "material defect" means a condition
7 that would have a substantial adverse effect on the value of
8 the residential real property or that would significantly
9 impair the health or safety of future occupants of the
10 residential real property unless the seller reasonably
11 believes that the condition has been corrected.
12 The seller discloses the following information with the
13 knowledge that even though the statements herein are not
14 deemed to be warranties, prospective buyers may choose to
15 rely on this information in deciding whether or not and on
16 what terms to purchase the residential real property.
17 The seller represents that to the best of his or her
18 actual knowledge, the following statements have been
19 accurately noted as "yes", (correct), "no" (incorrect) or
20 "not applicable" to the property being sold. If the seller
21 indicates that the response to any statement, except number
22 1, is yes or not applicable, the seller shall provide an
23 explanation, in the additional information area of this form.
24 YES NO N/A
25 1. ..... ..... ..... Seller has occupied the property
26 within the last 12 months. (No
27 explanation is needed.)
28 2. ..... ..... ..... I am aware of flooding or recurring
29 leakage problems in the crawl space
30 or basement.
31 3. ..... ..... ..... I am aware that the property is
32 located in a flood plain or that I
33 currently have flood hazard
34 insurance on the property.
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1 4. ..... ..... ..... I am aware of material defects in
2 the basement or foundation
3 (including cracks and bulges).
4 5. ..... ..... ..... I am aware of leaks or material
5 defects in the roof, ceilings, or
6 chimney.
7 6. ..... ..... ..... I am aware of material defects in
8 the walls or floors.
9 7. ..... ..... ..... I am aware of material defects in
10 the electrical system.
11 8. ..... ..... ..... I am aware of material defects in
12 the plumbing system (includes such
13 things as water heater, sump pump,
14 water treatment system, sprinkler
15 system, and swimming pool).
16 9. ..... ..... ..... I am aware of material defects in
17 the well or well equipment.
18 10. ..... ..... ..... I am aware of unsafe conditions in
19 the drinking water.
20 11. ..... ..... ..... I am aware of material defects in
21 the heating, air conditioning, or
22 ventilating systems.
23 12. ..... ..... ..... I am aware of material defects in
24 the fireplace or woodburning stove.
25 13. ..... ..... ..... I am aware of material defects in
26 the septic, sanitary sewer, or other
27 disposal system.
28 14. ..... ..... ..... I am aware of unsafe concentrations
29 of radon on the premises.
30 15. ..... ..... ..... I am aware of unsafe concentrations
31 of or unsafe conditions relating to
32 asbestos on the premises.
33 16. ..... ..... ..... I am aware of unsafe concentrations
34 of or unsafe conditions relating to
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1 lead paint, lead water pipes, lead
2 plumbing pipes or lead in the soil
3 on the premises.
4 17. ..... ..... ..... I am aware of mine subsidence,
5 underground pits, settlement,
6 sliding, upheaval, or other earth
7 stability defects on the premises.
8 18. ..... ..... ..... I am aware of current infestations
9 of termites or other wood boring
10 insects.
11 19. ..... ..... ..... I am aware of a structural defect
12 caused by previous infestations of
13 termites or other wood boring
14 insects.
15 20. ..... ..... ..... I am aware of underground fuel
16 storage tanks on the property.
17 21. ..... ..... ..... I am aware of boundary or lot line
18 disputes.
19 22. ..... ..... ..... I have received notice of violation
20 of local, state or federal laws or
21 regulations relating to this
22 property, which violation has not
23 been corrected.
24 Note: These disclosures are not intended to cover the
25 common elements of a condominium, but only the actual
26 residential real property including limited common elements
27 allocated to the exclusive use thereof that form an integral
28 part of the condominium unit.
29 Note: These disclosures are intended to reflect the
30 current condition of the premises and do not include previous
31 problems, if any, that the seller reasonably believes have
32 been corrected.
33 If any of the above are marked "not applicable" or "yes",
34 please explain here or use additional pages, if necessary:
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1 .............................................................
2 .............................................................
3 .............................................................
4 Check here if additional pages used: .....
5 Seller certifies that seller has prepared this statement
6 and certifies that the information provided is based on the
7 actual notice or actual knowledge of the seller without any
8 specific investigation or inquiry on the part of the seller.
9 The seller hereby authorizes any person representing any
10 principal in this transaction to provide a copy of this
11 report, and to disclose any information in the report, to any
12 person in connection with any actual or anticipated sale of
13 the property.
14 Seller: ............................... Date: ...............
15 Seller: ............................... Date: ...............
16 PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE TO
17 NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT
18 TO ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS
19 IS"). THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY
20 INSPECTIONS OR WARRANTIES THAT THE PROSPECTIVE BUYER OR
21 SELLER MAY WISH TO OBTAIN OR NEGOTIATE. THE FACT THAT THE
22 SELLER IS NOT AWARE OF A PARTICULAR CONDITION OR PROBLEM IS
23 NO GUARANTEE THAT IT DOES NOT EXIST. PROSPECTIVE BUYER IS
24 AWARE THAT HE MAY REQUEST AN INSPECTION OF THE PREMISES
25 PERFORMED BY A QUALIFIED PROFESSIONAL.
26 Prospective Buyer: .................. Date: ...... Time: ....
27 Prospective Buyer: .................. Date: ...... Time: ....
28 (Source: P.A. 88-111.)
29 (765 ILCS 77/40)
30 Sec. 40. Material defect. If a material defect is
31 disclosed in the Residential Real Property Disclosure Report,
32 delivered to a prospective buyer after acceptance by the
33 prospective buyer of an offer or counter-offer made by a
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1 seller or after the execution of an offer made by a
2 prospective buyer that is accepted by the seller for the
3 conveyance of the residential real property, then the
4 prospective buyer may, within 3 business days after receipt
5 of that report by the prospective buyer, terminate the
6 contract or other agreement without any liability or recourse
7 except for the return to prospective buyer of all earnest
8 money deposits or down payments paid by prospective buyer in
9 the transaction. If a material defect is disclosed in a
10 supplement to this disclosure document, the prospective buyer
11 shall not have a right to terminate unless the material
12 defect results from an error, inaccuracy, or omission of
13 which the seller had actual knowledge at the time the prior
14 disclosure document was completed and signed by the seller.
15 The right to terminate the contract, however, shall no longer
16 exist after the conveyance of the residential real property.
17 For purposes of this Act the termination shall be deemed to
18 be made when written notice of termination is personally
19 delivered to at least one of the sellers identified in the
20 contract or other agreement or when deposited, certified or
21 registered mail, with the United States Postal Service,
22 addressed to one of the sellers at the address indicated in
23 the contract or agreement, or, if there is not an address
24 contained therein, then at the address indicated for the
25 residential real property on the report.
26 A prospective buyer shall have no right to terminate the
27 contract or other agreement under this Act if the report is
28 delivered before the prospective buyer enters into an
29 agreement for the conveyance, lease, or other transfer of the
30 residential real property.
31 (Source: P.A. 88-111.)
32 (765 ILCS 77/55)
33 Sec. 55. Violations and damages. If the seller fails or
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1 refuses to provide the disclosure document prior to the
2 conveyance of the residential real property, the buyer shall
3 have the right to terminate the contract. No transfer subject
4 to this Act shall be invalidated solely because of the
5 failure of any person to comply with any provision of this
6 Act. However, A person who knowingly violates or fails to
7 perform any duty prescribed by any provision of this Act or
8 who discloses any information on the Residential Real
9 Property Disclosure Report that he knows to be false shall be
10 liable in the amount of actual damages and court costs, and
11 the court may award reasonable attorney fees incurred by the
12 prevailing party.
13 (Source: P.A. 88-111.)